Frontier plans massive FiOS cable TV rate hike

[Newsjock]

Source: The Oregonian

Frontier Communications Corp. plans a massive rate hike for its FiOS cable TV customers in Oregon and Washington, marginalizing the company as a competitor to Comcast.

Rates will rise 46 percent or more for standard cable plans -- the result, Frontier says, of rate hikes by the cable networks.

The higher rates won't immediately affect customers who have Frontier FiOS TV contracts with set pricing. But for customers without a contract, and customers whose contracts are expiring, the rate hikes will be steep.

For example, the monthly cost of Frontier's standard, 220-channel package will rise from $65 to $95 a month -- a 46 percent increase. The higher rates kicked in Monday for new customers, and start February 18 for existing customers without a service contract.

... The rate hike came as a shock to local cable TV regulators, who have no authority over most cable prices but had worked for years to encourage competitive TV service in the Portland area. Frontier's new rates exceed Comcast's by $30 a month, which regulators say prices FiOS out of the market.

Read more: http://www.oregonlive.com/business/index.ssf/2011/01/frontier_plans_massive_fios_ca.html

[dixiegrrrrl]

1. Why would they price themselves out of the market?

To give Comcast a monopoly?

What am I missing?

( I do not use cable)

[Sinistrous]

2. I wonder what Comcast's next rate hike is going to be.

This sure gives them a whole lot of freeboard.